Financial Ratio Analysis Of Gamestop Corp

The profitability ration in a financial analysis is the ability of the organization to generate a profit. This ratio looks at areas such as net income, revenue, gross profit, earnings before taxes and interest and operating profit to name a few. Profitability shows the bottom line numbers for a company and is the goal that most organizations strive for. Ratios examined were gross profit margin and net profit margins

The purpose of performance analysis is to know the operational efficiency and profitability of the company. Performance analysis does overall analysis of the company and helps to know the financial position of the company. A company’s financial position tells investors about its general well-being. Financial management involves planning and forecasting financials based on the strategic goals of the company and regularly reviewing actual performance against the forecasts, performance analysis helps in this process. Financial statements are referred for the purpose of performance analysis. Tool used is ratio analysis. Ratios give quantitative analysis of information contained in company’s financial statements as balance sheet, profit and loss

The following report is a brief comparative analysis of two of Australia’s largest deposit-taking financial institutions (FI), Australia and New Zealand Banking Group Ltd. (ANZ) and Westpac Banking Corporation (Westpac). This report seeks to identify which of the FIs has a greater aggregate return per dollar of equity and thus establish the highest performer, or most profitable, of the two. The Return on Equity Model (ROE) (Koch & MacDonald,

In 2005 GameStop became the largest video game retailer according to the article ( 2012). GameStop as of 2005 had over 4000 brick and mortar stores. GameStop also produces media to educate their consumers.GameStop is a destination for customers who are looking for games or gaming accessories. The value that you would perceive Gamestop provides is a brick and mortar store that provides a one stop stop for customers

GameStop Corp. (GameStop) is a specialty retailer that offers the most popular of video game hardware and software, as well as new and pre-owned mobile and consumer electronics products. As well as retail stores, GameStop also owns Kongregate, a site for browser-based video games; and Game Informer, a video game magazine; Simply Mac, an Apple products reseller; and Spring Mobile, an AT&T wireless reseller. It also acts on Cricket Wireless, an AT&T brand pre-paid wireless retailer, branded retail stores as an authorized agent.

Profitability ratios are measurements used by companies in order to measure a business ability to make earnings relative to sales assets and equity. These ratios assess the ability of a company to generate earnings, profits and cash flows relative to some metric, often the amount of money that a company has invested. They emphasize how effectively the profitability of a company is being handled.

Within the video game industry today, GameStop will be a good long-term investment. The evolution of technology has been huge in the industry. Although technology has caught up to GameStop, they have had a few technology strategies to keep them at the top of the industry. However, in the midst of the technology challenges they went away from what made them unique to stay above their competitors In order for GameStop to be a great long term investment they need to uphold what their mission and vision statement says. In 2010, it was predicted that GameStop will end up filing bankruptcy like Blockbuster due to online streaming of the video and game. For a few years it was looking that way as GameStop was steadily declining. With a change in management,

That’s a lot of different services that are offered to the world and many businesses. They are categorized as Specialty Retailers, “The general business activity and principal products or commercial enterprise of GameStop are categorized as being part of the Specialty Retailers Industry.” (Making A Fortune, n.d.). They specifically retail in video game hardware and software. They also deal within: video games, electronics of all sorts (cell phones, computers, tablets, multimedia devices). Tapping into all these different markets can only mean that GameStop must do well when it comes to making money and keeping their finances in order.

The current ratio of Starbucks in 2011 increases to 1.83 times from 1.29 times in 2009. To a creditor, higher current ratio means he can get his money more quickly. To the Starbucks, higher current ratio means an inefficient use of cash and other short term asset. Thus, Starbucks had more net working capital and was less efficient in using short term assets in 2011 than it was in 2009 and 2010.

GameStop has been around since 1984 and they have been evolving since then. They started out as a pure video game retailer, but now they are a family of specialty retailer brands. Currently, the company is operating more than 6900 stores in all over the world including Europe, Canada, Australia and the United States. Their product line basically consists of two major brands which are video game related brands and also technology brands. For the video game related brands, GameStop’s family include a lot of leading video game retailer such as EB Games who is well-known at the international level. From the annual report, it listed the net sales is increasing from last year by 2.8% which is an essential figure that suggests an encouraging growth in the business of this company. The increase in net sales is due to the increase in demand for new video game hardware and accessories. For the technology brands, GameStop is also a parent company for Simply Mac and Spring Mobile. These two retailers are known for their service in the mobile

The operating profit margin shows how much a company makes per dollar of items sold. This margin needs to be compared over time and with other companies to determine if the company 's margin is increasing. For this ratio, a higher number is better. In Table 2, Apple shows a larger number both years, with an increase in 2006. Dell 's increase was only a tenth of a percentage point.

— Return on Invested Capital (simple form) = Net Income – Dividends / Invested Capital

Over the years, Microsoft Corporation has been developing and supporting numerous software products for various computing devices worldwide. As stated by Liquori (2011), “[This] enables business innovation and helps builds the company’s competitive advantage” (n.d). Microsoft’s technical innovations and leadership in consumer and corporate markets has made it a formidable competitor in this information age (liquor, 2011). Throughout this paper, I will provide financial ratios analysis of Microsoft Corporation based on the available financial data for the last five years.

1. Profitability Ratios: it measure of the profit comparative to the resources available to generate the profit. Under this ratio we have four other ratios that are as follows:

Several profitability ratios measure the return you are making on your investments and sales. To do this, divide your net profits by your annual sales. You need to do this because even with sales, your may have a low profit margin, depending on startup costs, your pricing structure, and additional factors. You need a high profitability ratio for it to be healthy.